SUPERMARKET chain Sainsbury's had a record Christmas despite showing only a modest pick-up in sales in the past three months.
The group said like-for-like sales, excluding income from new stores, had risen by 0.7 per cent in the 12 weeks to January 6.
Group chief executive Sir Peter Davis said the figures were in line with expectations and showed the chain was achieving two of its major short-term objectives in the supermarket business.
These were stopping the decline in profitability and reversing the decline in customer numbers.
"Whilst the overall like-for-like sales are still only showing modest improvement, I am encouraged by good results from those stores in which we have invested," he said.
Stores that had been upgraded during the year had shown a 7.1 per cent uplift in like-for-likes.
At the same point last year, Sainsbury's showed like-for-like growth of two per cent.
Over Christmas this year, the group had beaten all its expectations.
"The emphasis we have given to fresh foods paid off and we traded with good product availability throughout the Christmas period," said Sir Peter.
Sir Peter said the group had seen a ten per cent increase in sales over the Christmas week.
He said he was particularly pleased by the sales growth in Sainsbury's stores that had been converted. The company was pressing ahead with its plans to upgrade up to 150 stores this year.
Gross margins had been healthy and net margins were stabilising, he added.
As to the lower like-for-likes than at the same point last year, Sir Peter said theywere not necessarily the important measure of progress.
This time last year the group, as well as announcing Sir Peter's appointment, also issued a profits warning.
The fact that this time round there was no warning and customer numbers were increasing were all encouraging, he said.
However, he conceded that some of the group's rivals had done better.
lOn Thursday William Morrison reported an eight per cent rise in like-for-like growth.
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